February 2009

Stimulus could revitalize muni Wi-Fi, other stalled projects

Could $7.2 billion in federal funds committed to boost broadband in the U.S. transform small towns like Truckee, Calif., into the next Mumbai, India, filled with beehives of call centers that employ local residents? The federal money is seen by many broadband analysts as a critical means of building new or completing hundreds of stalled municipal Wi-Fi and other broadband projects nationwide. The money could definitely breath life back into the old, mostly failed municipal Wi-Fi movement that first came to life in 2004 and deteriorated to a terminal state last year, said Craig Settles, an analyst and president of consulting firm Successful.com. What's more, with a strong financial shot in the arm, rural towns and suburbs could begin offering broadband to attract companies in addition to offering lower office rents than those demanded in big cities, Settles said. That kind of economic growth in new locations could lure companies to build in the U.S., rather than moving jobs abroad, Settles said.

Qwest: $3 Billion to Get Broadband to 95%

Larry Sarjeant, Qwest's Vice President of Federal Legislative and Regulatory Affairs, says it will cost Qwest $3 billion to get 7 Mbps broadband service available to 95% percent of its current footprint. Sarjeant says Qwest is currently at about 85% availability of 7 Mbps broadband. Qwest's estimates reveal the enormity of the broadband challenge in the U.S. By their estimate, 42 percent of the $7.1 billion broadband stimulus program could be swallowed by Qwest alone, and that wouldn't even get them to 100 percent coverage. It is going to cost a lot more than the identified stimulus money to get ubiquitous broadband to every corner of the U.S.

IT Security Tops Federal CIO Concerns

Information technology security is unsurprisingly the top challenge reported by federal government CIOs in an annual survey conducted by the Technology Association of America -- a group formed earlier this year by the merger of the Information Technology Association of America and the American Electronics Association. Since 2009 marks a period of greater change than normal, with the transition to a new administration, authors revised the study's format to examine impacts of the transition and offer advice for the future. The paper also looks back at the eight years of President George W. Bush's administration and provides commentary on challenges, outcomes and lessons learned. Key observations from CIOs for the Obama administration fit into the following themes: Strong leadership drives change; Employ laser-sharp focus; Demand results and verify; Achieve good IT governance; Fix IT infrastructure; Fund priority initiatives; Continue to standardize and consolidate; and Strengthen the blended workforce.

CTIA, Public Safety Groups Urge FCC Action on 'Harmful' Auxiliary Devices

On Monday, the CTIA - The Wireless Association sought to bar the sale or operation of low power wireless devices in the 700 Megahertz (MHz) band being vacated by analog television stations. CTIA was joined by the National Emergency Number Association, the Association of Public Safety Communications Officials and the National Public Safety Telecommunications Council in asking the Federal Communications Commission to protect the 700 MHz band from interference by "auxiliary" devices - a category that includes many commercially available wireless microphones and other devices that do not require a license to operate. In their letter, the groups tell Copps that the devices are now "a growing public safety issue" that should be brought to his attention. Possible interference from auxiliary devices "threatens to prevent licensees from realizing the benefits to public safety that the 700 MHz band promises," the groups write. "It is of critical importance that low-power auxiliary devices do not cause harmful interference to critical communications - and the commercial communications that enable ordinary Americans to reach public safety in their moments of need," they said.

The Embarq/CenturyTel Merger Is Moving Fast in Oregon

The Embarq/CenturyTel merger is not just pending Federal Communications Commission approval. The transaction, which affects more than eight million access lines in 33 states, must be approved by regulatory agencies in several states. Washington and Oregon are pivotal in this, partly because of the extensive rural coverage CenturyTel has in both states, and the merger raises substantive issues about industry consolidation and quality of rural service. Were the Washington or Oregon Public Utility Commission to deny the merger, it would likely kill the deal. It is for this reason that Embarq and CenturyTel tried to avoid having the Oregon PUC rule on the merger until a decision by the Oregon Attorney General forced it to do so. What is extremely important is that this proceeding is moving forward very quickly. Parties which have filed as intervenors in other states, including public interest groups, have apparently not taken notice of this fact, as evidenced by the lack of filers in the relevant docket, UM-1416. It is possible to file as an intervenor or interested party electronically. Essentially, if there are few intervenors, it is likelier that public hearings will not take place.

Free Press vs Tech Policy Institute on Broadband Minnesota

In December, Scott Wallsten of the Technology Policy Institute gave a presentation to the Ultra High-Speed Task Force. His perspective was that there isn't a broadband crisis in the US; we have time to develop good policy. Free Press Research Director S. Derek Turner says, "The simple fact is that international rankings do matter. This is not just a point of pride. Each spot the United States slips represents billions in lost producer and consumer surplus, and potentially millions of real jobs lost to overseas workers."

Updated: Tech firms slash 5,000 jobs

Hit hard by the recession, two U.S.-based tech companies announced job cuts that will put 5,000 people out of work. Spansion, based in Sunnyvale (CA), said on Monday that it will cut 3,000 jobs, or 35% of its total workforce, to save money for restructuring and to position itself for a possible sale. The company said the cuts will initially cost $25 million but would result in annual savings of $225 million. Micron Technology, based in Boise (ID), said it would cut 2,000 jobs by the end of August, all of them in its home state. Of these cuts, 500 will occur in the next couple of weeks. The company, which has 16,000 global workers, including 7,000 in the U.S., makes memory for computers and other consumer electronics. Micron said the cuts will cost the company $50 million initially, but will result in savings of $150 million annually.

Update: On March 1, Spansion said that it was seeking bankruptcy protection.

Talk-show lawmaker seeks to block Fairness Doctrine

Rep Mike Pence (R-IN), a former talk show host and current chairman of the House Republican Conference, is seeking to prevent the Federal Communications Commission using taxpayer money to force broadcasters to offer contrasting views on the airwaves. The so-called Fairness Doctrine has not been enforced since Ronald Reagan was president. But Rep Pence is concerned that on March 6, when the stopgap measure funding the government expires, Democrats could force the controversial policy to be put back in place. Rep Pence has drafted an amendment he intends to offer this week that would continuing blocking the FCC from resuming the policy. It's unclear whether the majority will allow the amendment to be offered as part of the debate. Congress tried to reinstate the Fairness Doctrine, which was originated in 1949, in 1987 and 1991. In both of those instances Presidents Ronald Reagan and George H.W. Bush killed the efforts by threatening the veto the legislation.

Obama Should Bring Back the Fairness Doctrine

[Commentary] The Fairness Doctrine did not require that broadcasters give equal time to liberal or moderate Democrats to counter the hot air of conservative talk jocks. The Doctrine did not tell broadcasters who should get a talk show, what the hosts could say, or who they had to have on their shows. By the time Congress shelved the Doctrine, the FCC had virtually ceased even enforcing it. The Fairness Doctrine simply served as a broad guide to insure that stations give at least some time to differing points of view; for example, views other than those of conservative white guys, and an occasional token conservative woman or black. If enough listeners complained that a station was too lopsided in the parade of conservatives it had spouting off on a particular issue, than it had to give "reasonable opportunity" to the other side to give an opposing view. The FCC didn't tell the station how much time to give, who to give the time to, or when to give it.

President Obama and the role of the ethnic press

[Commentary] The nation's first African American president has signaled that he may shake up the traditional protocols of Washington journalism. But Obama's forays into sometimes marginalized ethnic media outlets also renew a strategy dating to the Reagan administration and earlier -- finding alternatives to reach around the mainstream media and speak to loyal constituents. Black and brown media are having their moment. That's long overdue. But Rainey agrees with the journalists who told me that, to serve their audiences best, it's time to turn from celebration to examination.

Benton

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